26th April - Weekly FX Update

GBP/EUR

Monday 9AM 26th April: 1.14904

GBPEUR started out last week strong, trading above 1.16 following on from lifted restrictions in the UK and in preparation of fans being allowed back into stadiums. However, heading into the weekend, the Pound fell below 1.15, and has since traded steadily around that mark. The EU vaccinations have certainly picked up in recent weeks, and are now ahead of previous targets for the year. On top of this, loosened restrictions in both Italy and France has positively impacted the Euro. Looking ahead to this week, German data will dominate GBPEUR news, as German employment and inflation numbers are set to be released. Moreover, GDP estimates for the Eurozone will be available on Friday, and these figures will be a big driving factor in how the pair will trade over the next few weeks.

GBP/USD

Monday 9AM 26th April: 1.39025

The Pound managed to post gains for the second week in a row against the Dollar, breaking the 1.40 barrier very briefly early on in the week. UK retail sales provided a positive outlook for the Pound last week, volumes were up 5.4%, nearly 4% higher than predictions. Furthermore, declining U.S. yields weakened the Dollar, allowing the Pound to make steady progress throughout the week. Looking ahead, it is a very busy week for both UK and U.S. economic data. GBPUSD has support at 1.38, and it is expected to test this level after its failed attempt to establish some footing above 1.40.